SALES AT AGRIBUSINESS COOPERATIVE CHS INC HIT BY COVID-19 PANDEMIC
Diversified US agriculture-to-energy group CHS Inc has reported a $38million loss in the quarter ended February 2021 despite strong gains in its agribusiness segment.
The loss was versus net income of $125 million in the same quarter last year. Significant year-on-year increases in the company’s agriculture and nitrogen production sectors were offset primarily by ongoing Covid-19 pandemic-related impacts in energy.
Jay Debertin, president and CEO commented: “Improved relations between the US and foreign trade partners combined with operating efficiency initiatives led to record grain and oilseed volume increases and continued price gains, significantly improving our Ag segment earnings over the prior year.”
Debertin added: “We are cautiously optimistic about the rollout of Covid-19 vaccines and other progress being made in response to the pandemic in the US and around the world and the potential impact on our domestic and global businesses.”
The group, owned by farmers, ranchers and local cooperatives across the US, is a major grain processor – from dry edible beans and corn to sunflowers and soybeans. It also has a stake in Ardent Mills, North America’s leading flour supplier, and in Ventura Foods, a producer of oils, dressings, sauces, mayonnaises and margarines for foodservice and retail consumers.
As well as supplying foods and food ingredients, CHS also supplies energy, crop nutrients, seed, crop protection products, grain marketing services, agricultural services, and animal nutrition products. On the energy side, the company operates petroleum refineries and pipelines and manufactures, markets and distributes Cenex refined fuels, lubricants, propane and renewable energy products.